Coalition forms in wake of ruling on sweepstakes cafes

Published: Tuesday, January 29, 2013 at 2:49 p.m.

Last Modified: Tuesday, January 29, 2013 at 2:49 p.m.

In the wake of an N.C. Supreme Court ruling that upheld a law banning electronic gaming machines, a new statewide sweepstakes group has formed.

The Coalition for Electronic Sweepstakes represents concerned software providers, employees and sweepstakes owners, according to a news release.

The group aims to "educate the public and elected officials about the economic benefits of electronic sweepstakes cafes in North Carolina."

Jim Harris, the group's chairman, stated that sweepstakes businesses across the state employ thousands of people and generate millions of dollars in economic activity.

"The coalition is eager to work with the legislature to preserve these jobs, maintain and create additional economic benefits and tax revenue and provide law enforcement clarity of the law in order to clear up confusion and prevent never ending legal challenges," Harris said.

In Wilmington, the advocacy effort may be too late for the city's dozen or so sweepstakes parlors.

Earlier this month, the city sent letters warning property owners where sweepstakes businesses exist that after Feb. 11 they could be slapped with a $100 fine on the first violation. If they continue operating, the landowners could be fined $200 for each additional day they stay open.

City spokesman Dylan Lee Tuesday confirmed that the businesses still face fines after Feb. 11.

The penalties represent a continuation of long-standing conflict between a city that has not embraced sweepstakes and operators who want to be left alone. While the fines are civil penalties, sweepstakes operators could also face criminal charges, according to law enforcement officials in Southeastern North Carolina.

On Jan. 8, District Attorneys Ben David and Jon David, who together represent New Hanover, Pender, Brunswick, Columbus and Bladen counties, sent a joint letter to law enforcement authorities confirming they would prosecute legal violations related to sweepstakes laws.

"As such, you are going to have to determine on a case-by-base basis, through investigations, whether the law is being violated," the top prosecutors wrote.

<p>In the wake of an N.C. Supreme Court ruling that upheld a law banning electronic gaming machines, a new statewide sweepstakes group has formed.</p><p>The Coalition for Electronic Sweepstakes represents concerned software providers, employees and sweepstakes owners, according to a news release.</p><p>The group aims to "educate the public and elected officials about the economic benefits of electronic sweepstakes cafes in North Carolina."</p><p>Jim Harris, the group's chairman, stated that sweepstakes businesses across the state employ thousands of people and generate millions of dollars in economic activity.</p><p>"The coalition is eager to work with the legislature to preserve these jobs, maintain and create additional economic benefits and tax revenue and provide law enforcement clarity of the law in order to clear up confusion and prevent never ending legal challenges," Harris said.</p><p>In Wilmington, the advocacy effort may be too late for the city's dozen or so sweepstakes parlors.</p><p>Earlier this month, the city sent letters warning property owners where sweepstakes businesses exist that after Feb. 11 they could be slapped with a $100 fine on the first violation. If they continue operating, the landowners could be fined $200 for each additional day they stay open.</p><p>City spokesman Dylan Lee Tuesday confirmed that the businesses still face fines after Feb. 11. </p><p>The penalties represent a continuation of long-standing conflict between a city that has not embraced sweepstakes and operators who want to be left alone. While the fines are civil penalties, sweepstakes operators could also face criminal charges, according to law enforcement officials in Southeastern North Carolina.</p><p>On Jan. 8, District Attorneys <a href="http://www.starnewsonline.com/section/topic80"><b>Ben David</b></a> and <a href="http://www.starnewsonline.com/section/topic9984"><b>Jon David</b></a>, who together represent New Hanover, Pender, Brunswick, Columbus and Bladen counties, sent a joint letter to law enforcement authorities confirming they would prosecute legal violations related to sweepstakes laws.</p><p>"As such, you are going to have to determine on a case-by-base basis, through investigations, whether the law is being violated," the top prosecutors wrote.</p><p><i></p><p>Julian March: 343-2099</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @julian_march</i></p>